Kenya and the European Union (EU) have sealed an Economic Partnership Agreement, opening up duty-free and quota-free access for all Kenya’s exports to the US$ 18 trillion EU market.
- •The pact aims to boost bilateral trade in goods, increase investment flows, strengthen the ties between reliable partners, and facilitate mutually advantageous economic relations in a sustainable manner including stimulating job creation and economic growth.
- •In the agreement, no duty will apply for goods from Europe such as machinery, mineral and chemical products.
- •Additionally, it will also incentivize EU investment in Kenya, thanks to increased legal certainty and stability.
The Agreement, which includes trade and climate change, was concluded in June 2023 and signed by both parties on 18 December 2023. It also aims at implementing the provisions of the EU-East African Community (EAC) EPA, and it remains open to other EAC countries.
The EU is one of Kenya’s topmost export destinations and second largest trading partner with the total trade between the EU and Kenya reaching over €35 billion in 2023, an increase of 16% compared to 2018.
The EPA will create more opportunities for Kenyan businesses and exporters, as it will fully open the EU market for Kenyan products and incentivize EU investment in Kenya thanks to increased legal certainty and stability.
See Also:
